UN Tanzania. Business Operations Strategy

Transcription

1 UN Tanzania Business Operations Strategy

2 FOREWORD First of all, on behalf of the UN Country Team, let me thank the UN Development Group for selecting Tanzania to pilot the Business Operations Strategy. This demonstrates a real confidence in the work we have been doing to date to improve simplification and harmonization of business processes across the agencies. Tanzania has been on the forefront of Delivering as One (DaO) since 2007, with operational effectiveness at the heart of the country team s DaO reform agenda. In 2010, as part of the UNDAP planning process, the Country Management Team (CMT) as part of a broader vision for the UN Development Assistance Plan (UNDAP) period from 2011 to 2015, agreed the following operational component: The UN uses cost-effective business processes to provide common services in ICT, procurement, human resource and financial administration, to support the quality implementation of programmes. The UN works in one location, virtually and physically. Our journey has focused on simplification and harmonization, where there is an added value. Our experiences in operations as a pilot have informed guidance on key aspects of the reform at the global level, including common country level procurement processes, common Information Communications and Technology (ICT) and most recently the DaO Standard Operations Procedures (SOP). In Zanzibar, eight UN agencies (UNDP, UNFPA, FAO, WHO, ILO, UNICEF, ILO and UNIDO) continue to pilot the common premise model, including sharing common procurement, ICT, cleaning and security services. Significantly, we have made systematic progress towards greater accountability for our partners by undertaking joint annual audits and reporting involving five UN agencies UNDP, UNICEF, UNFPA, FAO and UNESCO. We continue to encourage all other UN agencies under the UNDAP to subscribe to the Harmonised Arrangement for Cash Transfer (HACT) process. Moving forward, the 2012 Quadrennial Comprehensive Policy Review resolution on simplification and harmonization of business practices as well as the DaO SOPs have provided further impetus. This is why I believe that the development of the Tanzania Business Operations Strategy (BOS) is timely, presenting us with an opportunity to re-evaluate our progress and challenges to further improve our approach and delivery of operation results under the UNDAP. The BOS will enable us to enhance the quality and delivery of business operations in Tanzania, focusing on cost savings secured in the areas of: common procurement; human resources; ICT and harmonisation of cash transfer (HACT). Finally, I would like to extend my sincere appreciation to the Tanzania BOS Task Team, the Operations Management Team (OMT), and its Working Groups, the UNDG technical support team, UNDOCO, and the UN Country Management Team for their support and encouragement in piloting the BOS framework. Alberic Kacou UN Resident Coordinator 2 UN Business Operations Strategy

3 INTRODUCTION... 4 UNDG BOS FRAMEWORK... 4 ADOPTING BOS IN TANZANIA... 5 COUNTRY OPERATIONS ANALYSIS AND RECOMMENDATIONS... 6 SUMMARY OF OPERATIONS BASLELINE ANAYSIS... 8 JOINT LOCAL PROCUREMENT... 8 HARMONIZATION OF CASH TRANSFER... 9 HUMAN RESOURCES... 9 FINANCE AND ADMINISTRATION... 9 TRANSPORT AND LOGISTICS COMMON SERVICES MAINLAND COMMON PREMISES IN ZANZIBAR UNCT AND BOS GOVERNANCE BOS KEY RESULTS AREAS PROCUREMENT INFORMATION COMMUNICATIONS TECHNOLOGY HUMAN RESOURCES FINANCE AND HACT LOGISTICS AND TRANSPORT COMMON UN PREMISES ZANZIBAR AND MAINLAND PLANNING, MONITORING AND EVALUATION RESOURCES AND BUDGETING MONITORING AND EVALUATION FRAMEWORK ANNEX 1 BASELINE AND NEEDS ANALYSIS ANNEX 2 COMMON ICT COST SAVINGS ANALYSIS ANNEX 3 PROCUREMENT ACTIVITY MAPPING PROCESS ANNEX 4 HARMONIZATION OF CASH TRANSFER PROCESS COST ANALYSIS ANNEX 5 HUMAN RESOURCE INTERNAL TRANSACTION COST SAVINGS ANNEX 6 CUSTOMER SATISFACTION SURVEY COMMON SERVICES IN ZANZIBAR UN Business Operations Strategy

4 INTRODUCTION In 2007, following the High Level Panel Recommendations on System wide Coherence, the Government of the United Republic of Tanzania signalled its interest to become one of eight 1 countries to pilot DaO. The overall purpose was to unify and align agencies processes in order to more efficiently and effectively deliver results in support of national priorities. Working as one, the UN can have a far greater impact on the development and humanitarian challenges that face a country, avoiding fragmentation and duplication of efforts. The key elements of the pilot were: One Programme One Leader One Office (subsequently renamed Operating as One) One Budget One Voice (subsequently renamed Communicating as One) At the commencement of the reform, 11 Joint programmes 2 including Operations were created and then retrofitted into the UN Development Assistance Framework (UNDAF). Right from the start, the CMT, supported the strengthening of the OMT by appointing an Operations Adviser based in the Office of the Resident Coordinator (RCO). The OMT also developed a three year ( ) Work Plan that included outcomes in procurement, human resources, ICT and HACT. The Work Plan was financed from the One Fund, and was subject to annual performance review criteria. The main objective of the Operations reform was simplification and harmonization of inter-agency business processes and systems for value addition to overall UN goals. As part of the process of developing the UN Development Assistance Plan (UNDAP) , the OMT Work Plan was further reviewed to identify progress, challenges, and lessons learnt. Since then, additional analysis has included: the Independent Evaluation of the eight pilots ; the Joint DaO Audit in Tanzania in 2012; as well as biannual reviews under the UNDAP planning, monitoring and reporting schema. UNDG BOS FRAMEWORK A BoS derives partially from UNDAF/programmes; and is a voluntary instrument to be used at the country level by UNCTs and OMTs. For former pilot countries, this is a mandatory requirement. It is developed in conjunction with the UNDAF; and covers Joint Business Operations initiatives. It provides strategic, medium term focus, same cycle as the UNDAF and provides the basis for Monitoring, Evaluation and Reporting of Business Operations. As a former pilot country, Tanzania s reform process is guided by the UN Development Group s guidance on DaO reforms and priorities including the BOS. The BOS is designed to run concurrently with the Tanzania UN Development Assistance Plan 3 process. It provides a strategic, medium term focus, and runs on the same cycle as the UNDAP. Diagram 1 below shows the key elements of BOS. 1 Mozambique, Tanzania, Rwanda, Cape Verde, Pakistan, Vietnam, Albania, Uruguay 2 Wealth creation, employment and economic empowerment; Maternal and New Born mortality reduction; support to national HIV/AIDS; Capacity strengthening for development management; Transition in Northwest; Strengthening national disaster preparedness ; Education; Environment and Natural Resource Management and Social Protection. 3 The UNDAP is a Single Plan for UN agencies in Tanzania from 2011 to The Plan includes 100% of all agencies activities for the period. 4 UN Business Operations Strategy

5 Diagram 1 ADOPTING BOS IN TANZANIA In December 2012, the CMT responded to the UNDG call to volunteer to pilot the BOS with support from the UN Development Operations Coordination Office. With strategic technical support from the RCO, the OMT formed a Task Force to work alongside the RCO to formulate the BOS. Given Tanzania was already two years into the current UNDAP cycle, it was agreed that a two year BOS would be most appropriate, with a new BOS developed as part of the programming for UNDAP II. The formulation of the two year BOS is based on lessons learnt under DaO complemented by detailed business process mapping analysis. Given the challenges in obtaining comprehensive data from 2008, 2012 was agreed as the baseline. In some cases the strategy makes reference to certain initiatives before 2012 in order to show the trend in progress. The main objectives of developing the BOS are: 1. Facilitate implementation of the UNDAP, which sets system-wide programme priorities to complement the national development goals 2. Support effective and cost-efficient delivery of programme activities 3. Increase harmonization and coherence within the UN system, and reduce transaction costs 4. Simplify procedures, and save costs by developing better relationships with key partners and suppliers, and the host government 5. Improve the planning, implementation, monitoring and evaluation, and reporting of the UN s inter-agency business operations through the use of measurable targets and indicators 6. To use the resource mobilization strategy and to attract funding for further improvement. 5 UN Business Operations Strategy

6 As part of efforts to support the UNCT in its development of the BOS, the UNDG provides offsite technical support to countries piloting the framework. Tanzania has been allocated two trained BOS experts to provide guidance for operational analyses, creation of a results and monitoring framework, and the narrative elements of the BOS. FAO Food and Agricultural Organisation of the United Nations IFAD International Fund for Agricultural Development ILO International Labor Organization IOM International Organization for Migration UN HABITAT United Nations Human Settlement Programme UN Women United Nations Entity for Gender Equality and the Empowerment The following resident UN agencies are part of the Tanzania Business Operations Strategy UNAIDS UNCDF UNDP UNEP UNESCO UNFPA UNHCR UNICEF UNIDO WFP WHO Joint United Nations Programme on HIV/AIDS United Nations Capital Development Fund United Nations Development Programme United Nations Environment Programme United Nations Educational, Scientific and Cultural Organization United Nations Population Fund United Nations High Commissioner for Refugees United Nations Children s Fund United Nations Industrial Development Organization World Food Programme World Health Organization COUNTRY OPERATIONS ANALYSIS AND RECOMMENDATIONS Baseline Analysis Tools and Process The foundation of the Tanzania BOS is the development of a well-grounded baseline and operation analysis. The OMT used two main operations analytical tools from the BoS guidelines with some modification to undertake the country operations analysis and to determine priority recommendations for the next two years. Given the data challenges, the OMT used 2012 baselines for the BOS. The OMT used the BOS operations needs analysis tools to capture current performance of the common services and the procurement Long Term Agreements. The OMT supplemented the baseline analysis tool with an Agency satisfaction survey to determine current agency levels of satisfaction and actions for improvement. The survey included questions on quality and costs of the LTAs and common services. Further the OMT carried out activity process mapping for joint procurement, joint auditing, joint micro assessments and proposed joint recruitment. The mapping demonstrated the potential internal cost savings that can result from undertaking a joint business process. Based on the final analysis the OMT made recommendations on the way forward with options to expand, downscale, adjust or modify services. See annex 1. At the strategic level the operations analysis also considered the relationship between the UNDAP priorities and the required joint operations support. The BOS articulates, in detail the contribution of operations actions to the UNDAP priorities. The synergies between programmes and operations are summarized in the diagram to the right. The BOS comprises of a logical framework of Specific, Measurable, Achievable, Realistic and Time bound Actions. There 6 outcomes; 12 outputs and 24 key actions. 6 UN Business Operations Strategy

7 The six outcomes are: a) Common local procurement systems, processes and management are strengthened. b) Cost effective ICT solutions to support programme delivery in place. c) In-country Human Resources processes are harmonized, efficient and responsive to programme and staff needs d) Cost effective interventions implemented to reduce delays in cash transfer and reporting. e) UNCT has reduced logistics and transport cost involved in programming. f) Common Services arrangements strengthened and agency expenditure reduced. In terms of the BOS planning process, the OMT first formed a BOS Task Team. The team developed a BOS Road Map, which was shared with the OMT and CMT. At the OMT annual retreat in March 2013, the RCO Operations Adviser presented the BOS principles and analytical tools. The OMT also reviewed the Working Groups governance arrangements and funding status. The RCO Planning Monitoring and Evaluation Specialist provided detailed guidance to strengthen the monitoring and evaluation framework of the OMT Work Plan. Diagram 3 below shows the process followed in developing the BOS. Diagram 2 7 UN Business Operations Strategy

8 SUMMARY OF OPERATIONS BASLELINE ANAYSIS JOINT LOCAL PROCUREMENT The part-time Tanzanian One Procurement Team (TOPT) was established in 2008 and tasked with enhancing common procurement management mechanisms and supporting national procurement systems. Currently there are a total of 82 LTAs in the Tanzania database, of which 58 are common to UN agencies in Tanzania, and 24 are agency specific. For the joint procurement process, the analysis revealed that there is an estimated 85% savings in staff time when a LTA is used. See annex 3 (LTA cost savings ) The total estimated savings from 2008 to 2012 is $2.4million. Based on current usage the projected savings would be around $4million by 2015, taking account of savings from price discounts UN Tanzania LTAs UN common local LTAs UN common hotel and conference LTAs Agency specific LTAs LTA usage 1,369 1,417 1, LTA PO Cost saved USD 800, , , , , , , , The agency performance survey covered the use of LTAs. UN agencies rated each LTA or common services on a scale from 1 (extremely satisfied) to 5 (extremely dissatisfied). Out of 17 possible agencies, 7 responded. Despite this low response rate, these 7 agencies represent the higher spenders. On the question of overall satisfaction levels regarding services, the agencies rated most highly services from travel agents, language translation, office stationery, driver s uniforms, toner cartridge, printing services and fuel suppliers. On quality and pricing, the top categories were stationery, footwear and tailoring. On average, about 60% of respondents rated quality and price at least 4 or above. See annex 1. Key issues in the use of LTAs, include lack of clear clauses referring to UN wide use in some contracts and adherence to Global Compact Principles. Due to regular changes in agency representation, there is a need to develop clearly written procedures for the use of common UN procurement in Tanzania. Another challenge is that insufficient time is allocated to TOPT activities by agency representatives due to competing agency priorities. On average, members spend between 2%-5% or less of their time on TOPT activities resulting in slow progress. Secondly, not all TOPT members annual performance appraisals include their contribution to TOPT, as a result there is little incentive for members to give due priority. Currently, TOPT members experience significant challenges in obtaining input from other agencies in the solicitation process, meaning that the requirements included in the tendering sometimes correspond only to specific agency s needs. Moreover, the lack of input means that suppliers bids sometimes do not take full account of all parties that could be involved and the potential for joint discount is lost. There has on occasions been an information gap between agencies included in TOPT and those without TOPT representation. Monitoring of LTAs has faced difficulties especially in feedback from end-users, as this is normally reported within the specific agency and not to the LTA holder nor to the TOPT. 8 UN Business Operations Strategy

9 On recommendations, no supplier was identified to be discontinued. Six suppliers (Step In limited, Bright Technical systems, Emlies Travels Limited, FEDEX Express Pax Courier LTD, MFI Office Solution, KK Security Group and Kuehne + Nagel) were identified as requiring significant improvements in service quality and costs. In order to fully meet programme needs, additional LTAs such as vehicle insurance, vehicle maintenance, ICT maintenance, ICT hardware procurement, and newspaper advertisement require development. There is a need for effective supplier monitoring arrangements for all the LTAs to ensure that suppliers continue to perform and adopt more proactive steps to mainstream Global Compact principles. Another major recommendation is for the CMT to consider a common agency arrangement or system to procure common goods and services on behalf of all agencies. HARMONIZATION OF CASH TRANSFER Five UN agencies, UNDP, UNICEF, UNFPA, UNESCO, and FAO have adopted the HACT modality. The key requirements involve commitment to joint micro assessments and annual audits and joint monitoring plans. Collectively, these five agencies contribute about 65% of the UNDAP budget. Since 2011, there have been joint micro assessments involving 58 implementing partners for both mainland and Zanzibar. For joint audits, 48 audits have been undertaken in the same period. For the joint audits, 5 were classified as qualified, and 35 as unqualified. Eight reports are still being finalized. For the micro assessment, 12 were reported as significant risks, with 35 as moderate, and 11 as low. The issues that need addressing include delays in reporting, reliable ICT, staff turnover, and adequate procurement systems. The joint approach by the five agencies has resulted in a reduction of internal transaction costs for UNCT in general, because all the agencies use one jointly selected consultant to undertake the micro assessment. The internal process cost is therefore based on one internal agency process cost, plus RCO coordination. For the joint micro assessments and joint audits, the internal cost for selecting a consultant is estimated to be $3,000 with the consultants fee standing at USD 5,000. This means that agencies relying on the joint process save USD 5,000 for each micro assessment and audit that is undertaken and an additional USD 3,000 for every cycle. From 2010 to 2012 there have been 46 audits and 68 4 micro assessments. On this basis, we calculate estimated savings of USD 275,000 and USD 80,000 for micro assessment and audits respectively. See annex 4 for details. On recommendations, the UN needs to intensify joint actions to address Implementing Partner issues around project management, budgeting, procurement and internal controls. There is also a need to quickly develop joint implementation plans to help implementing partners address the operations challenges identified, this would include working closely with development partners who have similar interests and work with the same partners. HUMAN RESOURCES Regarding Human Resources, the CMT has agreed a policy that UN staff appraisals take into consideration their role and contribution to DaO processes. Further, a staff induction booklet has been developed to facilitate newcomers adjustment to UN Tanzania and expedite their inclusion as productive members of the UNCT. Going forward, the main deliverables include: a web based staff and consultant database to support common operations and programmes capacity assessments; harmonized recruitment advertisements to reduce costs; utilization of the One UN website to further advertise UN vacancies. The OMT will also explore joint recruitment for common human resources personnel, starting with drivers, finance and administration staff at national officer and general staff level. Since joint recruitment has headquarter implications, progress will partly depend on UN headquarter decisions to allow greater flexibility at country level. The OMT will seek CMT endorsement of a concept note on joint recruitment before implementation. The OMT activity and cost process mapping on possible joint recruitment and concluded that an estimated savings of USD 2,460 per each joint recruitment exercise is possible. Annex 5, shows potential savings should the OMT implement joint recruitment. FINANCE AND ADMINISTRATION 4 Including 10 IP assessments not done jointly 9 UN Business Operations Strategy

10 On finance, the CMT endorsed a new contract for One UN bank - Citibank - in 2013 following a lengthy process. One of the financial benefits for selecting Citibank was that agencies save about USD 0.60 per staff when processing monthly salaries. Currently, agencies are in the process of negotiating the move to Citibank. The common approach on banking has internal process cost and discounted implications; these will be reported in December On administration, the OMT undertook a review of agency immunities and privileges. It identified inconsistencies in the provisions, as a result of different times that each agreement was signed by the various agencies. The review made recommendations including spouse employment, diplomatic Identifications cards, and tax exemptions applications. The OMT and the Resident Coordinator are working with the Ministry of Foreign Affairs to arrange a workshop that would involve departments like Revenue Authority, and the Ministry of Finance to try and agree a common solutions to the issues identified. TRANSPORT AND LOGISTICS On transport and logistics, there is a LTA for car rentals, but each agency procures and maintains its own fleet of vehicles, including insurance coverage. There is likely to be a savings opportunity if a common agreement can be secured by some or all UN agencies. Again the recently agreed 17 LTAs for hotels and conference facilities offer opportunities for further savings. The actual savings will be provided as part of the BoS annual reporting. COMMON SERVICES MAINLAND INFORMATION COMMUNICATION TECHNOLOGY On ICT, all UN agencies except UNICEF, have already signed the MoU (in 2010) to use a common platform. The ICT services is currently managed technically by WFP, and covers common internet services for UN agencies. The service includes a Metropolitan Area Network (MAN) providing a secure, private wireless and fibre network for UN Agencies with approximately 450 users in 11 locations in Dar es Salaam. The connection to common network (virtual LAN) covers: Procurement of equipment. Configuration & installation. Management of backhaul links connecting each location. Construction and maintenance of towers to mount required network devices. Provision of internet connection and bandwidth management. The supplier and staffing management components are ISP provisioning and contract management Manage contract, ensure supplier meets agreements Renewal of contract Payment processing Response to incidents Contact & liaison with 3rd party suppliers when necessary Restoration of service Outage reports Replacement or repair of faulty/past lifecycle equipment UNDP is responsible for financial administration of the process. By using a common internet provider, the estimated savings through discounts are estimated to be USD 302,808 for 2011/12. See annex 2 for detailed analysis. Additionally, the bandwidth capacity has increased from 15bps to 21bps as an average for each agency, this means faster internet browsing and connectivity. On recommendations, the services will continue but there is a need to tighten the reimbursement process. Also the OMT will explore options to implement a virtual office facility, common telephone systems, help desk and business continuity policy with the view to reduce costs. The OMT will also undertake a technical assessment of the common telephone system and fully 10 UN Business Operations Strategy

11 implement the share point facility. It is trying to manage delays in some agency payment of services and will undertake an agency satisfaction level survey in SECURITY On security, the OMT signed a new contract in 2013 with a security company to cover all UN agencies. The OMT has agreed to hold a regular performance review with the service providers to ensure quality services. There are concerns in this regard and ongoing discussions to address them. Specifically, there are issues around the quality of training of the guards, employment conditions and salary levels. Currently, the guards receive a salary about USD per month. The market in Tanzania is still developing and all available security companies face major challenges in recruiting and retaining quality staff and guards. The issue is therefore not finding a new service provider but finding innovative ways to ensure improvement. On recommendations, the security service will be maintained and the OMT will continue to discuss a modality to provide additional financial incentives to motivate security staff. Importantly, the OMT has developed a regular monitoring tool for the security service. UN MEDICAL CLINIC The UN operates two medical clinics, one in Dar es Salaam and one in Kigoma where UNHCR, IOM and WFP are present. The average annual budget for the two clinics 5 is estimated to be USD 500,000, which is cost shared by UN agencies based on staff numbers and dependants. Since, 2010, there have been three reviews of the clinics including one Mission from UN medical division in New York. As a result, several interventions have taken place to reduce expenditure and make the clinics financially self sustainable. Based on financial projections for 2013, the Dar es Salaam clinic will make a surplus of USD 24,000, whilst the Kigoma clinic will make a loss of about USD 30,000. The main reason for the loss in revenue is re-location of staff from Kigoma to Kasulu, decreasing the patient base. The success of the Dar es Salaam clinic was achieved through improved internal budgeting and direct billing to staff and insurance companies for medical services rendered. Procurement of quality drugs at discounted prices has also helped reduce operating costs. The UN clinic in Kigoma will need a different approach to make it self-sustaining. COMMON PREMISES IN ZANZIBAR On common premises, the Zanzibar One UN Office continues to provide eight UN resident agencies with common services in the areas of procurement, security, cleaning, and telecoms. Despite capital investments in security in 2010 and additional personnel to support common services, the UN has managed to maintain 2012 budgets for the 2013 programme year. The OMT will continue to implement measures to maintain or reduce operating costs in the light of some agencies reconsidering their tenancy in Zanzibar. In Zanzibar, a satisfaction level survey was conducted which focused on the overall provision of common services for the eight agencies. Overall, agencies are generally satisfied with all the common services (11% - Extremely Satisfied; 49% - Satisfied). Agencies are extremely satisfied with the following common services: floor space; water and electricity; telephone; shared vehicle use, and security. Office/floor space received the highest Extremely Satisfied response (44%). However, 17% stated they were dissatisfied by common services on: security, telephone, internet, equipment maintenance, cleaning, and procurement of stationary. The cleaning services received the most dissatisfied responses (44%), while security, telephone and equipment maintenance came equal second with a 33% dissatisfaction rating. Extreme dissatisfaction was conveyed only on the common services regarding shared vehicle use and maintenance, primarily because not all agencies cooperate in providing the service. Going forward, there is a need to improve the quality of cleaning and ensure availability of cleaning stocks in the building. There is a need to strengthen the procurement process to enhance value for money. There is also a need to conduct regular maintenance of equipment. See annex 6. KEY OPERATIONS CHALLENGES budget 11 UN Business Operations Strategy

12 One of the key challenges involves accountability for results. OMT staff struggles to balance their agency responsibility with that of inter agency with the result that less than adequate time is devoted to inter agency issues. Secondly not all staff has managed to include clearly in their annual appraisal their role in the interagency process meaning that some staff do not feel motivated to devote needed time for the report. 12 UN Business Operations Strategy

13 UNCT AND BOS GOVERNANCE The BOS process is fully integrated into the DaO structure as highlighted in the Standard Operating Procedures. Whilst the BOS mainly supports the one programme, the effective delivery of the BOS, depends on full implementation of the Management Accountability Framework under one leader, adequate funding, and reliance on communicating as one to promote efficiency savings. The OMT governance structure for BOS at the country level is shown in diagram 4, below. Diagram 4 THE JOINT GOVERNMENT AND UN STEERING COMMITTEE (JSC) Co-chaired by the Permanent Secretary of the Ministry of Finance and the UN Resident Coordinator, the JSC is the highest decision making authority on UNDAP and DaO reform. The JSC provides policy guidance on matters pertaining to UNDAP s alignment with national development priorities, decides on the allocation of One Fund resources and recommends measures for effective delivery. THE UN COUNTRY MANAGEMENT TEAM (CMT) The CMT manages the UN funds, agencies and programmes and directs planning and implementation processes in fulfilment of the UNDAP. It is composed of the RC, Agency Representatives or Country Directors of UN agencies, funds and programmes, including Non Resident Agencies. CMT members are accountable to the RC and to each other for achieving results under the UNDAP and DaO reforms. THE UN RESIDENT COORDINATOR (RC) Accredited by the UN Secretary General, the RC represents the CMT and leads its efforts towards a strategic positioning of the UN System in the national development context. The RC coordinates UN development assistance in the country and enters into agreements with the Government, Donors and other counterparts on the CMT s. 13 UN Business Operations Strategy

14 THE OPERATIONS MANAGEMENT TEAM (OMT) Under delegated authority from the CMT, the OMT leads efforts at the country level towards the simplification and harmonisation of business practices. The OMT s programmes are based on business mapping and process analysis targeted at reducing operational duplications and improving cost effectiveness to support the delivery of quality programmes. The OMT has oversight of four technical working groups on Procurement, Finance, Harmonisation of Cash Transfer (HACT), ICT, and Human Resources. The OMT is composed of the most senior operation official from each Country Team member. The Chair of the OMT rotates on an annual basis. The DaO SOP advocates for an empowered OMT including appointing a CMT member as a champion. THE PROGRAMME AND OPERATIONS MANAGEMENT TEAM (POMT) The inter agency programme committee team was reformed into the inter agency programme and operations management team (POMT) in The new arrangement enables programmes and strategic operations agenda to be discussed collectively at the technical level. The OMT chair is the co-chair of the POMT. The POMT meets every other month. Under the delegated authority from the CMT, the POMT is in charge of coordinating the implementation; monitoring and evaluation of UNDAP programme and cross cutting Working Groups. The POMT works in close consultation with the Operations Management Team. The heads of programme or the most senior programme official among UN Agencies and the UNDAP Programme and Cross Cutting WG leads compose the POMT. The Chair of the POMT rotates on annual basis. THE UN COMMUNICATION GROUP (UNCG) The UNCG plans, produces and oversees communication products, services and activities that encompass the UN system bodies, including internal communications, branding, public information materials and media outreach. It works to ensure that the UN in Tanzania speaks with one voice, including on common operations with the help of tools and working methods that improve the coordination, efficiency and impact of the UN s communication work. The UNCG coordinates advocacy campaigns on crosscutting issues such as human rights, gender and the environment. The UNCG is made up of communications officers and focal points from all UN Agencies and the UNIC acts as the Secretariat, while the chairmanship is held by each agency on a rotational basis of 6 months. INTER-AGENCY GENDER GROUP (IAGG), HUMAN RIGHTS WORKNG GROUP (HRWG), PLANNING, MONITORING AND EVALUATION (PMEWG) Reporting to the POMT, these three WGs advise the UNCMT on the integration of human rights, gender equality and resultsbased management in planning and programme delivery, operations management and communication. They coordinate the UNCMT s efforts to achieve relevant components of the DaO reform process results matrices and assist in the design and evaluation of UNDAP Programmes. PROGRAMME WORKING GROUPS (PWGS) The following UNDAP PWGs are established: Economic Growth, Environment and Climate Change, Education, Health, HIV/AIDS, Social Protection, WASH, Governance, Emergencies and Disaster Reduction. 14 UN Business Operations Strategy

15 BOS KEY RESULTS AREAS a) By 2015 the UNCT strengthens inter agency business harmonization and simplification in the area of Procurement, Human Resources, ICT, Finance and Common Premises. b) By 2015 the UNCT delivers estimated time and cost savings of between USD 6 to USD 8 million ( ) PROCUREMENT Notwithstanding the progress made, substantial work remains to be done in order to realize optimum harmonization and anticipated benefits. The baseline and needs analysis shows potential savings in time and resources through: increased use of LTAs; improved supplier monitoring; bulk procurement; and common consultancy pools. The OMT will strengthen mechanisms for common procurement processes, whilst exploring the business case for improved procurement arrangements to manage all UN procurement needs. Additional LTAs will be negotiated wherever practicable and a comprehensive catalogue of suppliers will be developed. A performance monitoring system incorporating regular assessment forms, market survey and random checks will also be introduced. Outcome 1: Common local procurement systems, process and management are strengthened. Key Actions: a) Implement regular supplier monitoring mechanisms focusing on prices and quality. b) Develop operating procedures for managing LTAs. c) Dexplore options for additional LTAs. INFORMATION COMMUNICATIONS TECHNOLOGY The common ICT platform will provide the mechanisms to support internal programme and operations information-sharing. Video-conferencing capabilities will be expanded, common voice and data services developed, and partner capacities augmented. The common ICT system will reduce duplication of service provision enabling, for example, joint telephone billing and increased flexibility of working conditions thereby increasing efficiencies and cost-effectiveness. Outcome 2: Cost effective ICT solutions to support programme delivery are in place. Key actions: a) Develop and manage applications to support UN programme and operations management functions b) Share Voice and Data services across the UNCT c) Adopt and regularly review Common business continuity management strategy HUMAN RESOURCES The OMT will explore measures to maximise staff motivation and performance across programmes and operations. This will entail harmonisation for selected elements in the recruitment process, strengthening information-sharing and reducing process costs. Similarly, common approaches to job classification, with an emphasis on gender equity, will be initiated and a common appraisal and harmonisation of agency entitlements under the Host Country Agreement explored where feasible. Additional areas will include a common consultant, and staff database, as well as database for sharing of recruitment information. Outcome 3: In-country Human Resources processes are harmonized, efficient and responsive to programme needs. Key actions: a) Adopt a harmonized approach to key in-country recruitment processes, job classification and contractual compliance emphasizing gender equity b) Adopt and implement a harmonized approach to appraising staff contributions to inter-agency coordination. 15 UN Business Operations Strategy

16 c) Operationalise and regularly update Common Consultant database FINANCE AND HACT Across all operations, procedures to be further simplified, partner costs cut and joint assurance activities undertaken. Through the application of micro assessments and mitigation activities as required, risks to the appropriate utilization of funds will be reduced through regular audits and strict implementation of audit findings. In accordance with the Paris Declaration on Aid Effectiveness, reliance on national systems will be promoted and capacity development support provided according to need. Other areas include joint training and audit of IPs, address of delays in transfer of funds through the national exchequer system, development and implementation of a common assurance plan and monitoring of joint agreements on IP transport reimbursement and DSA. Outcome 4: Cost effective interventions implemented to reduce delays in cash transfer and reporting. Key actions: a) Develop and implement common assurance plan b) Address delays in funds transfer via the exchequer c) Identify opportunities to strengthen IP performance and accountability d) Strengthen the HACT WG operations. LOGISTICS AND TRANSPORT The two travel management contracts are relatively stable but require robust monitoring and reporting to ensure the service offers best value for money. The LTAs for hotels and conference facilities will also be regularly monitored. The OMT will explore introducing a common agreement for vehicle maintenance and insurance. Outcome 5: Common logistics and transport cost systems to support programming is implemented. Key actions: a) Develop LTA for vehicle maintenance. b) Explore common transport policy in Zanzibar office c) Explore common transport policy for agencies on the Mainland (when they relocate to a common premise) COMMON UN PREMISES ZANZIBAR AND MAINLAND The pursuit of one office location for the entire UN system in Tanzania will remain a key objective for effective operations and programme delivery. In Zanzibar, all subscribed agencies will continue to share offices, a common IT and telecommunications system, procurement and security arrangements. During the BOS implementation period, measures will be introduced to further reduce operating budget for the Zanzibar office. On governance, the establishment of Zanzibar Common Services OMT will enable regular service level reviews. Outcome 6: Common Services arrangements strengthened and agency expenditure reduced in Zanzibar Key actions: a) Undertake annual client survey to support services improvement. b) Iintroduce equitable cost apportionment methodology. c) Produce monthly report to OMT including expenditure to OMT 16 UN Business Operations Strategy

17 PLANNING, MONITORING AND EVALUATION The BOS will be reviewed twice each year alongside the UNDAP sector programmes. See diagram 5 below. The baseline data is taken from 2012 for monitoring purposes. The Annual Review will report on progress made against targets and financial expenditure, major achievements and constraints. The procurement group will additionally report on activities under the Global Compact Agreement, as part of a commitment to mainstream UN programming principles. The OMT will provide a narrative summarizing progress against the desired outcomes. Findings from the Annual Review will enable appropriate strategic, operational adjustments, as required, for reflection in subsequent Annual Work Plans. A detailed evaluation of BOS will be undertaken in early 2014 or 2015 and the findings will inform the planning of the next BOS as part of the programming of the next UNDAP. Diagram 5 RESOURCES AND BUDGETING The BOS in Tanzania funded from the One Fund. The agency contribution comes in the form of providing staff to serve on the OMT, and the four working groups. The budget for 2013/14 has already been agreed in June 2013, as part of the Annual Work Plan. The RCO provides strategic, technical, coordination, and administration and reporting functions allocating 60% of a P4 and 50% of a P3, with costs estimated at USD 200,000 per year. There are funds available for coordination until June Going forward, the OMT projects approximately about $ 200,000 budget until Should additional costing emerge due to possible UNDAP extension, the UN will explore funding support options including targeting development partners and also an agency cost sharing model. 17 UN Business Operations Strategy

18 MONITORING AND EVALUATION FRAMEWORK Lead Agency Participating UN Agencies UNDP Business Operations Strategy Outcome 1: Common Procurement FAO, IFAD, ILO, IOM, UNWOMEN, UNAIDS, UNDP, UNFPA, UNHCR, UNICEF, WHO, UNESCO, UNEP, UNIDO Outcome 1 Common local procurement systems, process and management are strengthened. Output 1.1 Comprehensive catalogue of Long Term Agreements (LTAs) and additional suppliers of goods and services are introduced and regularly monitored Outcome Indicators Baseline (2012 if not otherwise indicated) 1.Cost savings secured through reduced staff time spent in procurement 2. Cost savings secured through lower pricing of goods and services in LTA negotiations 3. Agencies level of satisfaction with LTAs Target 2013 Target 2014 Target 2015 Means of Verification 703,000 USD 900,000 USD 120,000 USD 1.5 million USD USD 0% Agencies rate 60% of all LTAs at least 4 and above for price and quality 2% of base price Agencies rate 63% of all LTAs at least 4 and above for price and quality 2% of base price Agencies rate 66% of all LTAs at least 4 and above for price and quality 1% of base price Agencies rate 70% of all LTAs at least 4 and above for price and quality Purchase Order data containing LTA and non-lta procurement. Price comparisons LTA performance survey Risks and Assumptions Risks: Procurement staff does not allocate sufficient time to the development and operation of common procurement systems and processes. Different technical standards for equipment required amongst agencies. Lack of input from agencies in solicitation process. Assumption: HoA ensure sufficient time is allocated to the development and operation of common procurement. Individual agencies include their needs in specifications for the development of LTAs Staff reductions as a result of reduced time spent in procurement 18 UN Business Operations Strategy

19 4. Web based common suppliers database operational Agencies maintain individual suppliers databases. Web based common suppliers database developed. Reports on supplier performance available Reports on supplier performance available Database Key Actions Lead agency End date Develop common LTAs according to 2012 UNDG common country procurement procedures TOPT July 2014 ensuring inclusion of all relevant agencies input in solicitation process. Develop web based common suppliers database and monitoring of suppliers including ethical procurement WFP Database to be developed June 2014; monitoring to be continuously. Raise UN staff awareness of LTAs available through circulation of a quarterly updated list and ensure all UN LTAs are available online. RCO July UN Business Operations Strategy

20 Lead Agency Participating UN Agencies Outcome 2 Output 2.1 Business Operations Strategy Outcome 2: ICT WFP FAO, IFAD, ILO, IOM, UNWOMEN, UNAIDS, UNDP, UNFPA, UNHCR, UNICEF, WHO, UNESCO, UNEP, UNIDO Cost effective ICT solutions to support programme delivery in place. Voice and Data services are shared across the UNC Output 2.2 Applications to support UN programme and operations management functions are developed and managed Outcome Indicators Baseline (2012 if not otherwise indicated) Share point facility is operational Interagency/Working Group information is shared via s; No common share point facility in place Target 2013 Target 2014 Target 2015 Means of Verification Share point facility is developed Working Group minutes, calendars, reports, TORs and AWPs are available on the share point. DaO updates and UMOJA are shared via share point. Working Group minutes, calendars, reports, TORs and AWPs are available on the share point. DaO updates and UMOJA are shared via share point. User statistic from share point Bandwidth 13 Kbps 13 Kbps 14 Kbps 15kbps. ISP data Risks and Assumptions Risks: Agencies do not cover their cost of common ICT. The relocation to a joint UN house is delayed. Assumptions: Agencies fulfil their obligations as laid out in the MoU for the internet service provider. Costs savings secured through joint mobile phone tariff. 0% 3% of base cost 3% of base cost 5% of base cost Mobile phone invoices 20 UN Business Operations Strategy

21 % cost savings secured via common telephone and billing system Agency specific telephone/billin g (assessment underway) 3% of base cost 3% of base cost 5% of base cost Telephone invoices Key actions Lead agency End date IOM 30 June 2014 Undertake review of common ICT services and support Monitor cost savings from common ICT infrastructure WFP 30 June 2014 Based on the common telephone and video system assessment, implement agreed recommendations, implement One UN closed user group capacity with mobile service provider WFP Continuously Develop common business continuity plan. UNDP 30 June UN Business Operations Strategy

22 Lead Agency Participating UN Agencies? Business Operations Strategy Outcome 3: Human Resources UNICEF FAO, IFAD, ILO, IOM, UNWOMEN, UNAIDS, UNDP, UNFPA, UNHCR, UNICEF, WHO, UNESCO, UNEP, UNIDO Outcome 3 In-country Human Resources processes are harmonized, efficient and responsive to programme and staff needs Output 3.1 Output 3.2 Common Consultant database is operationalised and regularly updated. Harmonized approach to key staff entitlements is developed and operationalised Output 3.3 Harmonized approach to appraising staff contributions to inter-agency coordination is adopted and implemented Outcome Indicators Baseline (2012 if not otherwise indicated) Web-based common personnel database operational Web based common recruitment database operational Agencies maintain individual staff records, with no inter-agency sharing Agencies maintain individual recruitment records, with no inter-agency sharing. Target 2013 Target 2014 Target 2015 Means of Verification Web based common staff database developed; staff data available to all agencies. Web based common recruitment database developed; recruitment data available staff data available to all agencies. recruitment data available to all agencies staff data available to all agencies. recruitment data available to all agencies Staff database availability in RCO Common recruitment database availability Risks and Assumptions Risks: Agencies unable to harmonize due to restrictions in HQ policies. Assumptions: Adequate political support and financial resources are made available to the UNCT. 22 UN Business Operations Strategy

23 to all agencies. Joint recruitment undertaken at country level Zero joint recruitment Recruitment Concept note endorsed Joint recruitment of drivers Joint recruitment of GS and National staff. Spot check of agency recruitment of drivers. % cost savings secured through common job advertisements 0% 3% of base cost 3% of base cost 5% of base cost HRWG annual summary report Procurement data from agencies. Key Actions Lead agency End date Develop common consultancy database UNDP 30 June 2014 Develop common advertisement template WFP 30 June 2014 Develop common LTA with newspapers for job advertisements WFP 30 June 2014 Advertise all recruitment on the common website HR WG 30 June 2014 Monitor that all relevant staff have DaO included in their appraisal UNFPA 30 June UN Business Operations Strategy

24 Lead Agency Participating UN Agencies Outcome 4 Business Operations Strategy Outcome 4: HACT/Finance UNDP FAO, IFAD, ILO, IOM, UNWOMEN, UNAIDS, UNDP, UNFPA, UNHCR, UNICEF, WHO, UNESCO, UNEP, UNIDO Cost effective interventions implemented to reduce delays in cash transfer and reporting. Output 4.1 UN agencies operationalise harmonized processes for financial disbursement, reporting, auditing and quality assurance Output 4.2 Financial management capacity in priority MDAs enhanced Outcome Indicators Baseline (2012 if not otherwise indicated) 1.Joint assurance plan operational 2. No. of agencies adopting HACT audits 3. No. of agencies apply common transport reimbursement rates 4.Time taken for funds transfer to Implementing Partners Agency specific common assurance plans Target 2013 Target 2014 Target 2015 Means of Verification 5 UN agencies utilise joint assurance plan TBA TBA Monitoring Visits Report 5 agencies 6 agencies TBA TBA OMT Mid Year and Annual Report Survey on agency utilization of agreed rates. >6 weeks. <4 weeks TBA TBA Monitoring Reports Risks and Assumptions Risks: coordination challenges due to conflict between horizontal and vertical accountabilities. Assumptions: HoA will advocate for full adoption of HACT. Key Actions Lead agency End date Monitoring of reimbursement of harmonized transport allowance to IP. HACT/Finance Continuously WG Conduct annual Joint HACT audits for all relevant IPs across the UN system in a timely fashion UNDP 30 June 2014 Development of HACT database for joint audit, implementation and reporting RCO 30 June2014 Establish monitoring system for funds transfer and reporting UNDP 30 December UN Business Operations Strategy